FUEKIVND is designed to replicate the performance of the VN DIAMOND index, which consists of a minimum of 10 and a maximum of 20 Vietnamese diamond stocks announced and managed by HOSE. — Photo cafef.vn

The HCM Stock Exchange (HOSE) on Wednesday officially listed 5,100,000 fund certificates of the KIM GROWTH VN DIAMOND ETF (FUEKIVND) with a total value of VNĐ51 billion (US$2 million).

The reference price on the first trading day was VNĐ10,984 per fund certificate, with a price fluctuation range of ±20 per cent. FUEKIVND closed the day with a 2.1 per cent increase at VNĐ11,220 per fund certificate.

FUEKIVND is designed to replicate the performance of the VN DIAMOND index, which consists of a minimum of 10 and a maximum of 20 Vietnamese diamond stocks announced and managed by HoSE.

Managed by KIM Vietnam Fund Management Company Limited, FUEKIVND is an exchange-traded fund (ETF). Its investment objective is to closely mimic the volatility of the VN DIAMOND Index using a passive investment strategy with a structured securities portfolio based on the reference index.

This marks the fourth ETF to replicate the VNDiamond index basket, following DCVFM VNDIAMOND ETF (FUEVFVND) with a size of VNĐ14.8 trillion, MAFM VNDIAMOND ETF (FUEMAVND) with a size of over VNĐ500 billion, and BVFVN DIAMOND ETF (FUEBFVND) with a scale of over VNĐ50 billion.

Notably, the first fund replicating the FUEVFVND index basket attracted significant attention from foreign investors and became the most popular fund in the market. In 2022 alone, it attracted nearly VNĐ8 trillion in net investments, making it the largest domestic fund with a net asset value (NAV) exceeding VNĐ18 trillion.

However, since the beginning of 2023, FUEVFVND has experienced a significant decline, with nearly VNĐ4 trillion in net withdrawals in 2023 and an additional net withdrawal of nearly VNĐ2 trillion in the first three months of 2024. This downturn has caused the FUEVFVND to drop to the second position in the market, trailing behind the Fubon ETF. — VNS